If Goods Are Not Rationed According to Price,if Follows That

question 4

Multiple Choice

If goods are not rationed according to price,if follows that

• A) they won't get rationed at all.
• B) some non-price rationing device will be used to ration the goods.
• C) first-come-first-served will necessarily be the rationing device used in the market.
• D) there will be surpluses in the market.
• E) none of the above

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Definitions:

Intrinsic Value

The actual, inherent value of an asset, without respect to market value or external factors.

Market Capitalization Rate

A rate that represents the return expected by investors on a security or a portfolio, typically reflective of the risk and growth prospects.

Earnings Retention Ratio

The earnings retention ratio, also known as the plowback ratio, measures the percentage of net earnings a company retains to reinvest in the business, as opposed to distributing to shareholders as dividends.

Plowback Ratio

A metric indicating the proportion of earnings retained by a company for reinvestment in its operations, rather than distributed to shareholders as dividends.